Questions missed on practice exam
Obtaining information under false pretense is is a violation. What would be the maximum fine for any agent found guilty?
$10,000
Which statement regarding in trouble risks is not correct?
Insureds cannot be randomly selected
For how long is an insurance company allowed to defer policy loan request?
Six months
Which is not true about beneficiary designations?
The beneficiary must have insurable interest in the insured. A beneficiary is the person or interest to whom the policy proceeds will be paid upon the death of the insured. Beneficiaries do not have interest in the policy holder.
What is the purpose of the Annuity riders?
To allow investors to obtain additional benefit
All of the following are examples of risk retention except
Premiums
A life insurance policy can be delivered by all of the following means except
Priority mail
The importance of misrepresentation is determined by
The materiality of a given concealment
An ensurer has been found guilty of a code violation regarding replacement. The ensurer then repeats the violation. What will be the minimum penalty?
$30,000
An employee quit his job and convert his group policy to an individual policy; the premium of the individual policy will be based on his
Attained age
Which of the following types of insurance policies is most commonly used in credit life insurance?
Decreasing term
All of the following could be considered rebates if offered to an insured in the sale of insurance except
Dividends for a mutual ensurer
A set of legal or regulatory conditions that affect the insurance ability to collect premiums Commensurate with the level of risk incurred would be considered a
Legal hazard
The growing tendencies of individuals to file lawsuits in to claim tremendous amounts for alleged damages is known as
Legal hazard
Which of the following settlement options in life insurance is known as straight life?
Life income
An insurance agent in the state of California is able to transact business and all classes of insurance except
Life insurance (only a life agent can transact business for a life insurance)
If a licensee wants to terminate her agents license but it is in the possession of her employer which of the following is true?
She can terminate the license by sending the commissioner a written notice
And insurance policy that only requires a payment of premium at it inception, provides insurance protection for the life of the insured, and matures at the insurers age 100 is called called
Single premium whole life
An insurance agent who diverts premiums held in a trust capacity for his or her own use
Will be considered guilty of theft and be punished to the extent of the law
An applicant buys a nonqualified annuity, but dies before the starting date. For which of the following beneficiaries would the contract's interest NOT be taxable?
spouse
The interest earned on the policy dividends is
taxable
In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?
5
And insurance company was able to meet it's financial obligations to the policy owners; however, it does not own enough additional assets to equal at least amount of paid in capital. That company may be deemed
Insolvent
All of the following are the responsibilities of every long-term care insurance in California except
Provide enough business to solicit long-term care insurance
What kind of policy issues certificates of insurance to insureds?
Group insurance
A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?
Immediate annuity
The type of term insurance to provide increasing death benefits as the insured ages is called
Increasing term
Under a pure life annuity, an income is payable by the company
Only for the life of the annuitant
Which of the following is a key distinction between variable whole life and variable universal life products?
Variable whole life has a guarantee death benefit
Ensurer wants to begin underwriting procedures for an applicant. What source will it consult for the majority of his underwriting information?
Application
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
Cash option
The key factor of representation that allows the injured party to rescind the contract is
If the representation is false in a material point
The life insurance policy clause that prevents an insurance company from denying payment of a Death claims after a specified period of time is known as the
Incontestability clause
Insured had his wife's name as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life and come settlement option. The amount of payments will be determined by taking into account all of the following except
Insured's age at death
Which of the following is not true regarding the life with guaranteed minimum annuities settlement option?
It does not guarantee that the entire principal amount will be paid out
What method is used to determine the taxable portion of each annuity payment?
The exclusion ratio
All of the following statements concerning the use of life insurance as an executive bonus are correct except
The policy is owned by the company (the policy is owned by the employee)
Which of the following is not true regarding the annuity certain?
Benefits stop at the annuitant's death.
Which of the following is not a legitimate use of annuities by businesses?
Creating a tax shelter
Deceptive act or practice committed by a person with the intent to secure an unfair and finish or unlawful gain is known as
Fraud
Which of the following is a short term annuity that limits the amount paid to a certain fix period until a certain fixed amount is liquidated?
Annuity certain
